In August last year Manse and Garret blogged about the mansion tax proposals which had been floated at the recent Liberal Democrat conference. The idea went away almost as rapidly as it had appeared with senior Tories, such as Boris Johnson and Eric Pickles, arguing it would punish people for enjoying a buoyant property market, particularly in London. However the issue is back just in time for the Budget with many suggesting that a mansion tax on properties worth over £2 million could be introduced to buy Liberal Democrat support for the abolition of the 50p tax rate. It’s not exactly clear how the scheme would be administered but the system favoured by Vince Cable, Business Secretary, is a 1 or 2% annual rate on the value of the property over £2 million.

The primary argument in favour of the mansion tax is that it is a tax on ‘wealth’ as opposed to a tax on ‘income’. However at Manse and Garret we see on a daily basis that this simply isn’t the case. We deal with properties costing over £2 million and they are a far cry from a mansion. In prime central London £2 million normally only buys you a flat, usually a leasehold one – which means that you don’t really own the ‘mansion’ you have bought. In the London surburbs – Richmond, Putney, Muswell Hill, Highgate – over £2 million will get you a house but at less than £3 million it’s often semi-detached, with very little garden to speak of and it’s on a typical residential street. The simple fact is that if you picked these properties up and placed them in any number of good postcodes around the country – Lewes, Solihull, Alderley Edge– they wouldn’t fetch £1 million, let alone £2 million and above. So what we really have is a tax on London and it’s environs.

The tax will not even affect wealthy Londoners but rather people who are asset rich, many of whom have chosen to buy in and around London because they work in the city. They are being punished because they want to raise their families in a nice environment without a lengthy commute at either end of their busy working day or because they want to enjoy central London entertainment and shopping resources as a reward at the end of their long working day. The notion that the people buying the properties in London worth over £2 million are all fabulously wealthy, non-working and lazy individuals with money from some unknown but ultimately bottomless source is a myth. They are hard working individuals who contribute to the economic worth of Britain every day.

That’s why Manse and Garret do not favour a mansion tax, but if George Osborne decides that he does on Wednesday 23^rd March we will continue to be committed to helping our clients find fabulous properties, which will retain their value and make the mansion tax seem like a small price to pay for owning such a good investment.

Here at Manse and Garret Property Search we source properties in London’s best areas and on London’s best roads. However only occasionally do we come across properties in London’s best buildings – buildings so unique and well known that they often command a higher price tag than other comparable homes in the area. We always have to ask ourselves, is the extravagance of the address worth the extra money?

When the GLC was abolished in 1986, the grand, Ralph Knott designed “Edwardian Baroque” building located on the south bank of the Thames became surplus to requirements. The site was eventually sold in 1992 to the Japanese property developer Shirayama for a reported £60m – just before a recession and property slump. Given the economic climate, this figure raised a few eyebrows in the property world and some were concerned that Shirayama would not have the money to convert the building, having already spent so much to procure it. With hindsight it was a solid investment. The luxury hotel, aquarium, museum, exhibition space and restaurants attract over 17million visitors a year. The converted flats sell for around £800 – £900 a square foot – outside of the popular Shad Thames, these levels are uncommon for the SE1 postcode. These well-located flats, in the handsome Portland Stone building with excellent views have never failed to attract buyers and tenants.

Last year it was announced that the long term viability of the Houses of Parliament as the seat of British government was being questioned. Having always been an expensive place to run, the whole building is suffering from subsidence, and is slowly sliding into the River Thames. Thought to have been affected by the excavation of the Jubilee Line extension in the 1990s, and the underground car parking complex on site, surveyors have said that repairs to the building would take at least five years to complete. Government accountants argue that it doesn’t make sense to spend an estimated £1billion to repair an estate that is worth £1billion, although I am sure that English Heritage might think otherwise.

The Houses of Parliament, if converted to commercial and residential premises would no doubt be an even more popular housing and property destination than County Hall.  With 872 ft of river frontage on a site of approximately 8 acres, the number of luxury residences that could be created would certainly tempt any number of wealthy buyers, many of whom would happily buy off-plan to own such a desirable piece of real estate in one of London’s best known buildings with the SW1 postcode to match. Proximity to Westminster tube, to the West End and the caché that comes with owning property in one of the world’s most iconic buildings would certainly create demand for any residential property that was available on site and it is likely that the price per square foot achieved would be well above the £1,500 average that this part of Westminster currently commands.

So it seems sometimes paying more for property in one of London’s best buildings can pay off, not to mention also giving you an address everyone will recognise and a home or business everyone will want to come and see. If you need Manse and Garret to locate a unique home for you or a unique addition to your property portfolio please don’t hesitate to get in touch.

Technorati Tags: Historic buildings, House prices in London, London property, Planning Permission, property market news, Westminster house prices

Tags: Historic buildings, House prices in London, London property, Planning Permission, property market news, Westminster house prices

As a high end Property Finder, I often find myself musing on what I would buy and where I would buy it if I stumbled across a large sum of money. It can be quite a fickle day dream of mine as I can never quite decide if I would spend my (imaginary) money on an airy flat in a red-brick  Kensington mansion-block, a delightfully gothic house in Hampstead or a white stucco flat on a garden square in Pimlico (with access to the tennis courts, of course).  

‘Property Porn’ is the nation’s past-time, and the Metro indulged commuters this morning with a story about a unique house, in Newquay, Cornwall, which comes with its own suspension bridge.  I don’t think the 30 ft suspension bridge is part of the appeal, but rather something that you’d gladly put up with to live on Towan Island – a rock surrounded by the sea when the tide is in and a sandy beach when it’s out. Originally a tea-room, the 1930’s house has been lived in by the current owners for just over 10 years and has direct and un-spoilt sea-views. The extraordinary location and sea-views could be yours for £1million.

Photograph taken by Ennor

What will £1million buy you in London, Brighton or Sussex? Well that of course depends upon the location. In Knightsbridge, arguably the most prime of prime central London, £1million would buy you a one bedroom flat on the second floor of a very nice mansion block. In trendy Shad Thames, SE1, beloved by city folk who hate public transport, you could get a spacious two bedroom warehouse conversion with roof terrace and view of Tower Bridge for the same amount.  In Sussex you could move in to a charming rectory with a beautiful cottage garden. In Brighton you can buy a luxury three bedroom apartment with roof terrace and direct sea views, or lots of family houses in good roads and still have a few hundred thousand in your back pocket.

As London and Sussex Property Finders we don’t know much about property in the South-West, but if you’re searching for a unique property in London, or sea views in Brighton or Sussex, call Manse & Garret Property Search, the UK’s Best Property Finders on 020 7923 7564 and let us find it for you.

Technorati Tags: Buyers agents, House Prices, House prices in London, London Buyer's Agents, South East House Prices, sussex house prices

Tags: Buyers agents, House Prices, House prices in London, London Buyer's Agents, South East House Prices, sussex house prices